Hi,
I just want to start off by saying thank you to everyone on BP for sharing their knowledge and experience! I’ve been watching BP podcast and reading forums for a good year now.
I've teamed up with a partner whom I've known for over ten years, she has a good amount of experience in rehabbing and buy and holds. she’s a real go-getter and I trust her, she's pretty much family by marriage. I have no experience and am trying to get started in real estate investing.
The project is rehab and she's asked me to put the loan under my name. She will fund the down payment, rehab cost, monthly loan payments, and utilities.
In return, I will be the on-site project manager and she will give me a kickback once we sell the property. My main goal is to gain hands-on experience and knowledge from this rehab.
My questions are what is the risk involved with putting the property in my name? What happens after we sell as far as tax purposes who will get the tax benefits? Will I have to pay capital gain? Has anyone made a deal similar to this and if so what have you learned from your experience?
I’m basically trying to prepare myself for what's to come later and maybe try to get ahead of any issues that may arise. Like I said I don't have much experience, so if there are other question or concerns I should be worried about please feel free to let me know.
Thanks in advance.
